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3 sentenced for financial crimes

On Behalf of | Nov 14, 2013 | Tax Evasion

Massachusetts residents may have heard of the conviction of three men for financial crimes related to a failed bank in Georgia. Two of the defendants in this case held prominent banking positions, and reports say that their actions may have contributed to the banks failure.

According to the US Attorney, the former executive vice president of the bank received over $200,000 in cash bribes from the banks largest borrower. The vice president allegedly loaned the man more than $7 million for the renovation of a hotel, but reports say the borrower used the money to travel by private jet to the island he purchased in the Bahamas. He later defaulted on the loans, which contributed to the bank’s failure. Another former vice president of the bank allegedly sold almost all of his stock based on information that had not been released to the public, leading to the charge and conviction for insider trading.

The executive vice president was sentenced to two years and six months in federal prison for tax evasion, conspiracy to commit bribery and bank fraud. The borrower was sentenced to five years in prison, as well as restitution and fines in excess of $5.6 million. The other vice president was ordered to serve three years of probation and 120 hours of community service in exchange for his guilty plea. These convictions were the end result of efforts by the Financial Fraud Enforcement Task Force, which was created in order to combat financial crimes.

When someone is accused of a financial crime, that person may benefit from the help of an attorney. When faced with charges similar to the case above, the attorney may be able to help individuals make informed decisions that might lead to a reduction in charges and sentencing.

Source: FBI, “Three Sentenced on Conspiracy, Insider Trading, and Tax Evasion Charges “, November 06, 2013


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